Communications giant Alcatel-Lucent is to cut 4000 jobs by 2009 following weak results for the third quarter.

Revenue fell seven per cent to €4.35bn (£3bn) compared with last year, while net loss totalled €258m (£180m) or 11 cents (11p) per share.

The job cuts are part of a plan to generate savings of €400m (£279m) in gross margin and comparable operating expenses by the close of 2009, says the French-American firm.

Intensified competition and a decrease in spending in North America affected performance, according tp chief executive Pat Russo.

"Market conditions along with our commitment to transform the company for the long term lead us to put in place an aggressive three-part plan to improve profitability and reposition the business," said Russo.

“These are difficult but necessary decisions, and we will manage these reductions with care.

"The company is targeting gross margins in the high 30’s and operating margins of 10 per cent or better in the post integration phase beginning 2010.”